We have been reminding everyone that we believe we are unwinding a financial euphoria episode that Charlie Munger called the biggest of his career, “because of the totality of it.”
The events that began with Thursday’s tumult in financial stocks and precipitated the FDIC takeover of Silicon Valley Bank and Signature Bank were swift.
There were many good things to think about from Warren Buffett’s letter to shareholders which came out recently. In this piece, we’d like to drill down on two subjects that Buffett highlighted.
As a young stockbroker in the 1980s, I was very enamored with T. Boone Pickens.
On February 5, 2023, Charlie Munger sat down as the Chairman Emeritus of the Daily Journal Corporation (DJCO) to answer questions from shareholders and the public.
We are closing in on what we think may be the question of the decade. If a majority of stock market capitalization in the US is passive or indexed, does this cause problems for stock markets?
A recession is two consecutive quarters of economic contraction.
In 1817, David Ricardo developed his theory of comparative advantage to explain why countries engage in trade together, even when one country has an absolute advantage.
As we start the year 2023, we are reminded of the profound poetry from the band, Echosmith, in the song, “Cool Kids.” It can teach us about what it takes to succeed in long-duration common stock investing currently.
It appears to us at Smead Capital Management that investors are behaving in a way that will damage their capital and cause them to suffer stock market failure.
I was reminded in a recent read of Robert Hagstrom’s book, Warren Buffett: Inside the Ultimate Money Mind, how Warren Buffett and Charlie Munger define the economic earnings power of a business.
The Wall Street Journal reported last week that the National Association of Home Builders’ (NAHB) sentiment about the future was 33% and at its lowest since 2012.
In the 1994 comedy film, Ace Ventura: Pet Detective, Lt. Einhorn is the female leading the Miami police’s investigation of the disappearance of the Miami Dolphin’s mascot, Snowflake.
The era of the dynamic sales growth tech company, with a religious quality to its leadership, appears to be over.
If you were walking down the street and saw a $100 bill just sitting near the curb, would you pick it up?
Newton's First Law of Motion states that an object in motion tends to stay in motion unless an external force acts upon it.
The investors in the Smead International Value Fund have asked our team at Smead Capital Management what looks attractive today.
We are at the point in this nasty bear market where those who are buying the glamour tech stocks of the last ten years (on the way down) are at a crucible.
The investors of Smead Capital Management have been hearing us talk about ‘First World Problems’ recently.
Thanks to reading Spencer Jakab’s book, The Revolution That Wasn't, we've been thinking about what it is like to be in a short position when overwhelming demand affects prices.
The current stock market circumstances have created an incredible contrast between what investors say they think about the stock market versus what they are doing with their capital.
We believe one of the hardest things to do in common stock investing is to hold winners for a long time. This is especially true with what are normally cyclical industries.
While reading Jeff Nussbaum’s new book Undelivered, I came across the story of Boston’s Mayor Kevin White and the 1974 busing of Boston public school students.
We are getting questioned constantly on how long this bear market in U.S. stocks will continue.
As we’ve hit the halftime mark for the investment year 2022, we are faced with a daunting two-headed monster.
Chairman and largest shareholder, Harold Hamm, is trying to own our shares of Continental Resources (CLR US) at a price of $70.
Someone once said, “Better than being smart is knowing who is!”
Over the last four years, we have argued that the glamour monopoly technology companies have a low multiplier effect in the U.S. economy
Academics argue that there are three proven factors of investing: Value, quality and momentum.
Virtual reality is not reality!
The future is always unknown.
After listening to the Berkshire Hathaway Annual Meeting on April 30, 2022, we thought it would be appropriate to frame the aggressive buying of Occidental Petroleum (OXY) and Chevron (CVX) in the first quarter of this year.
In 1980, when I came into the investment business, investors were very conscious of trading ranges that had existed the prior 16 years.
Moving forward beyond the pandemic of 2020, the theme the world woke up to is that people want more…more home, more land, more entertainment, more goods.
As a firm, we refrain from delving into politics and political debates.
The news of Berkshire Hathaway’s purchases in Occidental Petroleum (OXY) has been seismic in our minds, but to most investors it has been but a whimper
Totally Addressable Markets (TAM) are at the heart of what Charlie Munger calls the biggest euphoria episode he has ever seen in his career. We believe that the coming stock market failure emanating from the over-pricing of the U.S. stock market is closely tied to TAM.
In an upcoming episode of A Book With Legs podcast, we interviewed Robert Hagstrom on his book, Investing: The Last Liberal Art.
In our recent media engagements, we have been asked if the Russian invasion of Ukraine is the cause of the carnage in the stock market this year.
Warren Buffett released his 2021 Berkshire Hathaway Annual Letter on Saturday, February 26, 2022. He seemed to want to talk about almost anything besides the stock market.
A couple of weeks ago, we gave a presentation at the first annual Smead Investor Conference near our headquarters in Phoenix.
We operate under the premise that alpha can be generated by stock selection, courage, concentration, and long-duration holding periods.
We were watching CNBC recently and an analyst mentioned what practically nobody besides us has said.
Ben Graham is ascribed as being the father of value investing.
On April 12, 2019, Chevron (CVX) and its CEO, Mike Wirth, offered $33 billion dollars to buy the common shares of Anadarko Petroleum.
There are three pillars of investing for us at Smead Capital Management.
The beginning to 2022 has been dark to say the least.
Most professionals who employ our strategy are wide-asset allocators
We have been reading a book written by David Carey and John Morris called King of Capital. It is the story of the Blackstone company and its key founder, Stephen Schwarzman. An economic history from the 1980s through today is included and lays out some excellent reminders of certain disciplines which can create wealth in picking public companies to invest in.
In the depths of the lockdowns in March and April, we were together at home, day after day. The U.S. Federal Reserve Board pumped large amounts of liquidity in our economic system. The U.S. Federal Government followed by providing large amounts of fiscal stimulus in PPP loans...
